WEALTH OP NATIONS. 141 



jcct of the coinage, and the variations, both in the actual 

 amount of gold and silver at different times existing in 

 the country, and in the real value of the precious metals 

 themselves, from the varying quantities yielded by the 

 mines of the world, and somewhat also from the varia- 

 tions in the demand for them ; these metals being like all 

 other commodities, liable to fluctuation from the supply 

 and the demand varying, and their value being measured 

 by the goods or the labour they can purchase. 



2. In a rude or perfectly natural state of society, 

 when each person enjoys the whole produce of his labour, 

 exchange would be regulated by the time of labour, the 

 hardness of the work, the perilous or disagreeable nature 

 of the occupation, the skill required to carry it on ; but 

 as society advances, when men are set to work for others 

 and paid by their employers, there goes a part of the 

 produce to the employer, and the consideration in the 

 exchange or sale of the produce consists of two parts 

 the wages of the workman, and the profits of his 

 employer. When the labour has been employed upon 

 land by those who are not the owners, they must pay to 

 the owners something for the use of it; and this is called 

 rent, which Dr. Smith considers as entering into the price 

 of produce, together with wages and profits, that is, the 

 time of the labourers and the profits of the farmer; so 

 that he considers wages alone, or wages and profits of 

 stock alone, or wages, profits, and rent together, as enter- 

 ing into and composing the price of all commodities. 

 He also considers all prices as of two kinds the natural, 

 and the actual or market price; the former being that 

 which replaces the wages paid for producing the article, 

 with the profits of the employer, and in cases of agricul- 



